Frequently Asked Questions (FAQs)

Questions:

1. How does the financial aid office determine my budget?
2. How do I locate the financial aid Cost of Attendance (COA) at my school?
3. Can the financial aid office include things like car payments, credit card payments, and vacations in my budget?
4. How do I determine my spending plan?
5. Why is a spending plan important?
6. What’s the difference between direct expenses and indirect expenses?
7. How can I reduce my spending and control the amount of debt while I am in school?
8. Are there any ways I can save money in order to reduce my overall borrowing on student loans?
9. Do you have a sample on-line form I can use to assist me with my individual spending plan?
10. Are there financial records I should keep in a secure place while I am attending school?
11. Is there a way to save money while I am in school?
12. Are there scholarships which can help me limit the amount I need to borrow?
13. Are there ways to ensure I will be financially successful?

Answers:

1. How does the financial aid office determine my budget?

Each school’s financial aid office will include the following items as part of its financial aid budget or cost of attendance (COA):

• Tuition and Fees
• Room and Board
• Books and Supplies
• Transportation
• Health Insurance
• Miscellaneous/Personal Expenses

2. How do I locate the financial aid Cost of Attendance (COA) at my school?

Generally, the financial aid office will provide you with a packet of information when you are accepted for admission. Many schools also list estimated costs of attendance on their website or through the school catalogue.

3. Can the financal aid office includes things like car payments, credit card payments, and vacations in my budget?

Generally, the answer is no. While these items may be included in your spending plan, financial aid offices cannot cover these costs as part of your educational budget.

4. How do I determine my spending plan?

First, take a look at all of your expenses, including those items in the financial aid COA and compare these expenses to your income sources, including financial aid, savings and gifts.

5. Why is a spending plan important?

Your spending plan is a road map to reaching your financial goals. By reviewing your spending plan, decisions that you make as a student will impact your financial goals when you graduate and throughout your lifetime. Remember that educational debt is a strategy to getting what you want – which is a attaining professional degree. However, the amount of your educational debt is largely determined by one thing – your spending plan.

6. What’s the difference between direct expenses and indirect expenses?

Direct expenses are generally items which are required for you to attend school. These include tuition and fees, rent or room and board, books, supplies and the cost of health insurance. Indirect expenses are usually discretionary, and include things like dining out, entertainment, credit card payments, and shopping.

7. How can I reduce my spending and control the amount of debt while I am in school?

First and foremost, review your monthly spending plan each month. If you spend too much one month, try to reduce your expenses in the following month. In addition, if you have unexpected educational expenses, talk with your financial aid office to see if they can make an allowance to your overall cost of attendance. Retaining only one credit card, and paying the balance off each month will help you save on any interest. In addition, use savings to cover emergencies to avoid credit card charges. Keep in mind that a debit card can also be used for purchases, and such purchases do not carry any interest charges.

8. Are there any ways I can save money in order to reduce my overall borrowing on student loans?

Absolutely. If you are not living in student housing, look for roommates to share the rent, utilities and household items. Look for the best cell phone plans which include free nights and weekends and utilize email to communicate with friends instead of using non-free minutes on your cell phone. Also, always buy items on sale unless you absolutely need them.

9. Do you have a sample on-line form I can use to assist me with my individual spending plan?

Yes. Click on the on-line Student Budget Worksheet ( Excel)

10. Are there financial records I should keep in a secure place while I am attending school?

Yes. It is a good idea to keep a 3-hole binder to store award letters, copies of promissory notes and disclosure statements as well as repayment schedules. Also, it is a good idea to keep your rental agreements, warranty forms and receipts in a safe place.

11. Is there a way to save money while I am in school?

Generally, it is a good idea to put away about 5-7% of your annual income or financial aid in savings account to cover emergencies and to not rely on credit cards. Remember that your spending plan can change from one month to the next, so it is important to budget appropriately to keep your overall borrowing to a minimum and to ensure that you have some piece of mind by keeping a small amount of money in a savings account to cover any unexpected expenses.

12. Are there scholarships which can help me limit the amount I need to borrow?

Absolutely. Click on the on-line Scholarship Search (links page).

13. Are there ways to ensure I will be financially successful?

Yes. First, never lose sight of why you are in school – to earn a professional degree. Second, identify your short term and long term goals and create a spending plan to help you get there. Third, save when you can, and borrow as little as possible. By focusing on your financial goals, you will be on your way to financial success!